C1Part 1Special Resolution Regime

Annotations:
Modifications etc. (not altering text)

Introduction

I11Overview

1

The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties.

2

The special resolution regime consists of—

a

the three stabilisation options,

b

the bank insolvency procedure (provided by Part 2), and

c

the bank administration procedure (provided by Part 3).

3

The three “stabilisation options” are—

a

transfer to a private sector purchaser (section 11),

b

transfer to a bridge bank (section 12), and

c

transfer to temporary public ownership (section 13).

4

Each of the three stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—

a

the share transfer powers (sections 15, 16, 26 to 31 and 85), and

b

the property transfer powers (sections 33 and 42 to 46).

5

Each of the following has a role in the operation of the special resolution regime—

a

the Bank of England,

b

the Treasury, and

c

the Financial Services Authority.

6

The Table describes the provisions of this Part.

Sections

Topic

Sections 1 to 3

Introduction

Sections 4 to 6

Objectives and code

Sections 7 to 10

Exercise of powers: general

Sections 11 to 13

The stabilisation options

Sections 14 to 32

Transfer of securities

Sections 33 to F148A

Transfer of property

Sections 49 to 62

Compensation

Sections 63 to 75

Incidental functions

Sections 76 to 81

Treasury

Sections 82 and 83

Holding companies

Sections 84 to 89

Building societies, &c.